May 2022
S. 9(1)(vi) of the Act; Article 12 of India-Singapore DTAA – Where clients themselves generated reports using web portal of the assessee, and they did not have access, either to process, or to equipment, of the assessee, income of the assessee was not Royalty, either u/s 9(1)(vi) of the Act, or under Article 12 of India-Singapore DTAA
By Geeta Jani | Dhishat B. Mehta | Bhaumik Goda
Chartered Accountants
Reading Time 3 mins
2 M/s Salesforce.com Singapore Pte vs. Dy. DIT [2022] 137 taxmann.com 3 (Delhi)
ITAT “D” Bench, Delhi Members: N.K. Billaiya, AM and Anubhav Sharma, JM ITA No: 4915/Del/20166, 4916/Del/2016, 6278/Del/2016, 2907/Del/2017, 4299/Del/2017, 8156/Del/2019 and 999/Del/2019 A.Ys.: 2010-11 to 2016-17; Date of order: 25th March, 2022 Counsel for Assessee/Revenue: Shri Ravi Sharma, Adv, Shri Rishabh Malhotra, Adv/Ms. Anupama Anand, CIT- DR
S. 9(1)(vi) of the Act; Article 12 of India-Singapore DTAA – Where clients themselves generated reports using web portal of the assessee, and they did not have access, either to process, or to equipment, of the assessee, income of the assessee was not Royalty, either u/s 9(1)(vi) of the Act, or under Article 12 of India-Singapore DTAA
FACTSThe assessee was a company incorporated in, and a tax resident of Singapore. It was engaged in providing comprehensive Customer Relationship Management (CRM) services to its clients through its CRM application software portal. The clients subscribed to the services which they required. In consideration for the services, the clients were required to pay a subscription fee to the assessee. They could access the portal for the period they had paid the subscription fee.
The clients fed data into a database of the assessee. Thereafter, they were enabled to manage customer accounts, track sales, evaluate marketing campaigns, provide better post-sales service,
